"Groceries operate at razor-thin margins" Groceries operate at razor-thin net margins. Ernie's will operate at double-digit net margins. If you take a look at

"Groceries operate at razor-thin margins" Groceries operate at razor-thin net margins. Ernie's will operate at double-digit net margins. If you take a look at the books for any supermarket chain, you will see that the vast majority of gross profits gets eaten up by running those large storefronts. Webvan (and other home delivery attempts) simply replaced the large storefront cost with a large logistics cost. Ernie's eliminates those costs, all while reducing the chore of shopping for the consumer. It's a win-win.